Stifel Nicolaus Forecasts Strong Price Appreciation for DigitalOcean (NYSE:DOCN) Stock

DigitalOcean (NYSE:DOCN) had its price objective upped by analysts at Stifel Nicolaus from $35.00 to $40.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “hold” rating on the stock. Stifel Nicolaus’ target price suggests a potential upside of 12.83% from the company’s current price.

Other research analysts also recently issued research reports about the company. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. JPMorgan Chase & Co. boosted their price objective on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday, October 25th. Canaccord Genuity Group raised their target price on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, October 4th. Finally, Barclays upped their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Five research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, DigitalOcean presently has a consensus rating of “Hold” and a consensus target price of $42.13.

DigitalOcean Stock Up 1.9 %

Shares of DOCN stock opened at $35.45 on Wednesday. The firm has a market cap of $3.27 billion, a P/E ratio of 41.71, a price-to-earnings-growth ratio of 2.47 and a beta of 1.76. The business has a 50-day moving average price of $39.44 and a two-hundred day moving average price of $37.27. DigitalOcean has a 12-month low of $26.63 and a 12-month high of $44.80.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.12. The business had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. DigitalOcean’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.17 earnings per share. As a group, research analysts expect that DigitalOcean will post 1.01 EPS for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the transaction, the chief financial officer now owns 517,498 shares in the company, valued at approximately $20,699,920. This represents a 2.36 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Bratin Saha sold 3,468 shares of the firm’s stock in a transaction that occurred on Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total value of $132,408.24. Following the completion of the transaction, the insider now owns 379,795 shares of the company’s stock, valued at approximately $14,500,573.10. The trade was a 0.90 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 32,955 shares of company stock valued at $1,258,373. 0.74% of the stock is currently owned by company insiders.

Institutional Trading of DigitalOcean

A number of hedge funds have recently modified their holdings of DOCN. Geode Capital Management LLC increased its position in DigitalOcean by 7.9% during the 3rd quarter. Geode Capital Management LLC now owns 1,464,333 shares of the company’s stock valued at $59,156,000 after buying an additional 106,636 shares in the last quarter. Jacobs Levy Equity Management Inc. grew its stake in shares of DigitalOcean by 32.8% in the third quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock worth $56,449,000 after acquiring an additional 345,119 shares during the last quarter. Principal Financial Group Inc. increased its holdings in shares of DigitalOcean by 10.4% during the third quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock valued at $52,568,000 after acquiring an additional 122,651 shares in the last quarter. Van Berkom & Associates Inc. raised its position in shares of DigitalOcean by 1.6% in the 2nd quarter. Van Berkom & Associates Inc. now owns 1,273,103 shares of the company’s stock worth $44,240,000 after purchasing an additional 19,731 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in DigitalOcean by 23.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock worth $37,512,000 after purchasing an additional 205,007 shares in the last quarter. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).